The Korea Land and Housing Corporation(LH) has received the second-lowest grade in the government’s annual evaluation of public institutions’ management as it remains bogged down by allegations of illegal speculative acts at the hands of its employees. 

The state management evaluation committee presided by Finance Minister Hong Nam-ki on Friday reviewed and approved the assessment of public organizations’ performances and practices last year. 

LH, which last year had received an A-grade, the best in the five-tier assessment system, was given the second-lowest D-grade. As a result, the president and executives of the state-run company will not be eligible for any bonuses while bonuses for lower-level employees will shrink to an eighth of last year’s levels.

Employees however will not be able to receive their bonus until the ongoing police investigation into LH employees' suspected real estate irregularities is finalized. 

Park Chun-seop, the head of the evaluation committee, said strengthened assessment of ethical issues were factored into the latest evaluation.